Saving on Your Insurance Policy

You can save hundreds of dollars on auto insurance with a little time and research. First, determine how much coverage your state requires to insure individual vehicles. Next decide how much additional coverage you want to purchase. Experts recommend that if you have a lot of assets, you should get enough liability coverage to protect them. For instance, if you purchase $50,000 of bodily injury liability coverage but have $100,000 in assets, attorneys could go after your treasures in the event of an accident in which you’re at fault and the other party’s medical bills exceed $50,000.

It’s also important to know your driving record. Nothing can drive up the price of a policy like a bad driving record. If you have moving violations or tickets on your record that will expire shortly, wait until they are removed before soliciting quotes.

The next key step is competitive shopping. You can do it online or by calling various insurance agencies. Make sure that you give each one the same information because the slightest variation could affect the quote. Remember to ask about discounts. Insurance companies give discounts for a good driving record, favorable credit score, safety equipment (for example, antilock brakes), certain occupations or professional affiliations and more.

Once you’ve decided on a company, ask family and friends if they have done business with that company. The policy rate may be great but the company may have a reputation for reneging on commitments or being slow to respond. Finally, review the policy before signing and make sure to cancel your old policy upon signing. —J.M.